The history of industry in the Mansfield Shire has long been intertwined with the utilisation of its natural resources.

From the gold rush era of the 1850s to the post-war timber boom and the enduring strength of agriculture, the local economy has deeply benefitted from the land.

While perhaps not on the same historical scale as gold or timber, the extraction of local stone, particularly mudstone, has in recent decades become a lucrative commercial activity within the shire.

“The Mansfield area has the geology to be an important provider of the gravel, stone and crushed rock for essential housing and infrastructure construction,” said Amanda Wellesley, Acting Chief Inspector Resources Victoria.

Today, as infrastructure and housing construction drive demand for these materials, quarrying is under the spotlight.

And while mudstone is used primarily in landscaping projects, Mansfield Shire Council’s recent approval of mudstone extraction on prime agricultural land in Bridge Creek has prompted community discussion about regulation, environmental safeguards and long-term land management.

Family enterprises like the one in Bridge Creek trace a history of mudstone extraction spanning 150 years, originally undertaken to improve pastures.

In more recent decades, the longstanding practice has evolved into a commercial enterprise.

Alongside that, the regulatory landscape has changed.

Classified as quarrying, the activity is now managed under a Work Authority – or a Work Plan for larger operations - while smaller sites are also reliant on council planning permits and, critically, the landholder's promise of rehabilitation.

However, recent local debate, notably concerning the extraction site at O’Halloran Road, Bridge Creek have highlighted a perceived gap in the regulatory system, particularly around the enforcement of site rehabilitation.

Overseen by Resources Victoria, the existing framework means that for smaller-scale operations, like O’Halloran Road, a rehabilitation bond is not required.

This lack of a financial guarantee places the onus of site restoration entirely on the landholder, a system critics argue lacks the necessary rigour.

The furore over the O’Halloran Road proposal, which saw objectors demand increased transparency and more stringent guidelines, was seen by some as a moment to strengthen environmental safeguards.

Council has jurisdiction over planning permits for smaller sites.

With recent council approval for stone extraction at O’Halloran Road and a permit issued for Soldiers Road in Barwite in prior years, objectors say there was an opportunity for more rigorous rehabilitation requirements to be considered.

Mansfield Shire Mayor Cr Steve Rabie said that council takes its environmental obligations seriously.

“We consider every proposal for stone extraction carefully,” he said.

“Council weighs up the benefits against the very real impacts on our community, our environment and our landscape.

“If we issue a planning permit for stone extraction works, they will be issued with permit conditions.

“Usually this requires a level of rehabilitation.

“Council can enforce compliance with the conditions on a planning permit, including rehabilitation requirements.”

However, with site rehabilitation and recovery often taking upward of ten years, some in the community have questioned how effectively these long-term obligations are being met.

Given the lucrative nature of the industry, these residents contend that council could strengthen its policies, such as exploring a local bond system.

For Kim Magnay of Up2Us Landcare, discussions around stronger guidelines for the industry are not just about damage limitation; they represent a significant opportunity for environmental enhancement.

While extraction can have high environmental impact when old stands of native vegetation or native grasslands are removed, Ms. Magnay said many sites in the shire are in already degraded pastures, presenting a chance for meaningful restoration.

“With stronger guidelines in place, the rehabilitation of extraction sites could become a real opportunity,” Ms. Magnay said.

She highlights the often-overlooked value of the soil microbiome which is heavily disturbed during extraction.

“This living network of fungi and bacteria is essential for producing healthy plants and animals, breaking down nutrients for plant uptake, sequestering carbon, and playing a crucial role in water storage and movement within soils,” she said.

“Soils are also the largest terrestrial carbon store, holding around two to three times more carbon than the atmosphere.

“When soils are disturbed through cultivation, mining, extraction, or overgrazing this stored carbon is exposed to oxygen, accelerating decomposition and releasing significant amounts of CO₂ into the atmosphere.

“This loss is exactly what so many of us are working hard to prevent.”

One powerful approach Ms Magnay believes is to mandate on-property offsets.

“When done strategically the introduction of more native vegetation, such as shelterbelts or corridors of trees, shrubs, and grasses, as well as the reintroduction of paddock trees that are rapidly disappearing, can not only enhance the landscape but deliver multiple benefits including carbon sequestration,” she said.

According to Ms. Magnay, strategic native revegetation can sequester between one to four tonnes of CO₂ per hectare per year, helping to mitigate the carbon released through soil disturbance.

Ms. Magnay also raised the issue of biosecurity, noting that the movement of invasive weed species like Chilean Needle Grass, Patterson’s Curse, Blackberry, Broom and Gorse is often evident near local stone extraction enterprises.

This raises the question of whether stone extraction operators should shoulder a greater responsibility for controlling these threats.

Currently there is no legislation that enforces a shared responsibility, and though the state regulator, Resources Victoria, is increasing its scrutiny across the board there is limited long-term oversight monitoring rehabilitation efforts after stone extraction has taken place.

The regulator's focus is more on ensuring operational risks are managed and that all Work Plan obligations, including ensuring extraction limits, are being met.

“Making sure these materials are properly extracted to protect communities and infrastructure is a priority for Resources Victoria,” said Ms. Wellesley, confirming the regulator is inspecting every mine and quarry in Victoria at least once by mid-2026.

“What we are seeing is that operators want to do the right thing,” Ms. Wellesley said.

“Where we have identified room for improvement, they have completed required actions promptly.”

However, for the Mansfield community, where nature-based tourism has become the primary economic driver, the future of resource extraction is inextricably linked to the protection of the environment that underpins the region’s prosperity.

Many in the community believe council has an opportunity to strengthen its framework for future planning permit applications, helping ensure site rehabilitation delivers lasting benefits for the shire’s environment.